Right now the Brazilian Congress is working on the changing of the constitutional items that regulate what is called in Brazil “precatory”. For the Brazilian law practice “precatory” is a decision from a court of law acknowledging a certain debt from the government (city hall, state government or federal administration) and ordering this government to pay it until a certain date. Usually these “precatories” are not paid until the due date and the Brazilian government estimates there is about 100 billlion reais (about 53.7 billlion dollars) in due “precatories” that have to be paid so that there is not a total demoralization of the Brazilian justice.
Nowadays there are so many of these “precatories” there virtually is a “market” that trades them with agio, which is a discount on the value of the “precatory”, as these “precatories” can be used as currency in lawsuits in which government charges for unpaid taxes or other similar situations. About 20% of the states’ and city halls’ revenue is committed with “precatories”
It may be hard to explain a situation like this, but for those acquainted with the Brazilian institutions it is easy to believe it. The constitutional changes being negotiated right now in the Brazilian congress are trying to make it easy for city halls and state governments to pay these “precatories”, with almost unlimited possibilities of sharing these debts in installments at lower interest rates and auctions starting at the lowest offer for small debts. The Brazilian bar association, named OAB, says this is a total default and a case of state tyranny.
During the release of the new oil regulation bill by the President of Brazil, Greenpeace protested saying one cannot talk of “pre-salt” oil without talking of pollution. Greenpeace says this oil is richer in carbon dioxide. The protest did not make barely any cover headline in the press but the government added items on environment to the new regulation.See the video at webpage www.direitosdocontribuinte.com.br